21/08/2023
SINGAPORE – Only families and singles who earn $14,000 or less a month can buy Plus flats on the resale market in the future as part of tighter restrictions to keep homes affordable and ensure fairness in the public housing system.
Plus flat owners also cannot rent out their entire flat at any point, even after the 10-year minimum occupation period (MOP) is over, said National Development Minister Desmond Lee on Monday.
Providing details of resale conditions for Plus flats, Mr Lee said the rules will moderate demand and keep such homes affordable and inclusive over time.
He noted that about eight in 10 Singaporean households earn $14,000 or less a month – the prevailing income ceiling to buy Build-To-Order (BTO) flats.
Plus flats are a new category of flats located in choicer locations within each region across Singapore, such as those near the MRT station or town centre. These flats will only be launched for sale from the second half of 2024.
Prime Minister Lee Hsien Loong had announced on Sunday that all BTO flats will be categorised into Prime, Plus and Standard flats from the second half of 2024, in an overhaul of the current framework of classifying estates as either mature or non-mature.
The new framework will not affect existing home owners or those who have already booked flats as BTO projects that have been launched will not be reclassified.
On Monday, Mr Desmond Lee said the significant changes to how HDB classifies and sells new flats are to uphold key objectives of affordability, a good social mix in every town and region, and fairness.
At least one buyer must be Singaporean in order to purchase Plus and Prime flats on the resale market.
There will also be a 30-month wait-out period for private property owners who wish to buy a Prime or Plus flat on the resale market, said Mr Lee at a post-National Day Rally conversation session at the Lifelong Learning Institute.
Currently, there are no income ceiling restrictions to buy a resale flat, except for Prime flats which have yet to hit the resale market.
Standard flats, which remain the majority of the housing supply, will not have an income ceiling set for resale buyers.
Both Plus and Prime flats will be subjected to a 10-year MOP, longer than the five-year MOP for Standard flats.
Prime and Plus flat buyers will have to return additional subsidies when they sell their flats on the resale market for the first time.
Mr Lee noted that the changes will not apply to the 1.1 million existing HDB flats, which will continue to be under existing rules.
“This means that Singaporeans who fall outside the $14,000 income ceiling will still have access to the existing 1.1 million flats as well as Standard flats when they enter the resale market,” he said.
